The following particulars relating to contract ‘A’ are obtained at the year end. Date of commencement is April 1.
|
Rs |
|
|
Contact price |
6,00,000 |
|
Materials delivered direct to site |
1,20,000 |
|
Materials issued from store |
40,000 |
|
Materials returned to store |
4,000 |
|
Materials at site on December 31 |
22,000 |
|
Direct labour |
1,40,000 |
|
Direct expenses |
60,000 |
|
Architect’s fees |
2,000 |
|
Establishment charges |
25,000 |
|
Plant installed at cost |
80,000 |
|
Value of plant on December 31 |
65,000 |
|
Accrued wages on December 31 |
10,000 |
|
Accrued expenses on December 31 |
6,000 |
|
Cost of contract not yet certified |
23,000 |
|
Value of contract certified |
4,20,000 |
|
Cash received from contractee |
3,78,000 |
|
Materials transferred to contract ‘B’ |
9,000 |
You are required to show:
- Contract account
- Contractee’s account
- Extracts from the balance sheet as on 31st December, clearly showing the calculation of work in progress.